Researching On Chinese Equity Open-end Funds Investment Value Evaluation

The open-end fund, as a new type of investment instruments, has been widely accepted by investors and proves itself to be very promising in the future. However, we notice that the researching development of the value evaluation of domestic investment funds lags behind the fast growth of the open-end funds market. So by building an open-end fund value evaluation system according with the situation of our country to assessing its performance has a critical theoretic and realism significance.Based on the aggregation of theoretical study and empirical study, as well as the present situation in China's fund market, first, this paper states some general theories about the open-end funds value evaluation; second, this paper selects 11 evaluation indexes from six aspects, including fundamentals, risk, risk premium, investment and management capacity, investment style, market performance, building up a comparatively comprehensive and systematic open-end fund value evaluation system in accordance with the fund industry in China .It makes this evaluation system can represent funds' investment value information completely, and uses the real data of Chinese open-end funds to carry on empirical analysis; afterwards AHP analysis is carried out to predigest evaluation outcome to obtain final evaluation result. In the empirical analysis of 20 Chinese open funds where the value evaluation system is applied, we draw some meaningful conclusions.The results of the empirical studying indicate: as a whole, the return of the open-end funds surpasses the market benchmark, but the function of dispersing risks is not obvious. There is no evidence that indicate the funds have market-timing ability, but have certain security selection ability. The funds generally adopt a more focused investment strategy, on the whole, they are facing tremendous liquidity risks. The funds have no performance persistence. This paper ranks them according to their integrated scores. Based on the main factors that affect funds' investment value we have found, we make some useful suggestions on application in the end.